Box truck and cars outside a small auto lot, How to Start a Towing Business in Georgia

How to Start a Towing Business in Georgia: Nonconsensual Towing Permit, Rate Tariff and Insurance

If you plan to tow vehicles from private parking lots and apartment complexes in Georgia, the most important rule is the nonconsensual towing permit issued by the Georgia Department of Public Safety (DPS). It is not a general business license. Most of the work in starting this business is getting the entity, insurance, impound lot and paperwork in place before DPS will issue the permit.

This article is informational content, not legal or tax advice. Rules change, and cities and counties add their own requirements. Talk with a Georgia attorney and a CPA before you sign a lease, buy a policy or sign a contract with a property owner.

Before You Start: Know How Georgia Handles Business Licensing

Georgia issues no general statewide business license. The Secretary of State issues none, and registering with the Department of Revenue for sales tax is not a business license. A towing company typically does three things. It registers its entity with the Secretary of State, it registers with the Department of Revenue through the Georgia Tax Center if it sells taxable goods or has employees, and it adds the licenses and permits that fit its activity. The towing-specific permit is the DPS nonconsensual towing permit.

The local license is an occupation tax certificate, often called a business license. A city issues it for businesses inside city limits. The county issues it for unincorporated areas. Each of Georgia's 159 counties and about 537 cities sets its own formula, deadlines and prerequisites. A business inside a city pays the city, not the county, so confirm your location before you apply.

In practice, you will form the entity and secure insurance before you file for the DPS permit, because the permit requires both. The steps below are ordered by how much each rule affects your operation.

What You Need Before You Apply

Gather these items before you file anything:

  • A Georgia LLC or corporation registered with the Secretary of State
  • One business name that matches every document: the entity filing, any trade name, the DPS application, insurance certificates, contracts and signage
  • Insurance that meets the DPS minimums described in Step 3
  • A fenced, lit, locked impound lot in the county where your listed office is located
  • Tow trucks marked with the carrier name and DOT number, and a copy of the permit in each one
  • A listed public phone number with an attendant available 24 hours a day
  • A written contract template for each property owner you serve
  • Receipt forms that the person paying will sign
  • A driver list and motor vehicle reports, kept on file for DPS
  • A copy of the DPS maximum rate tariff
  • Your local occupation tax certificate once it is issued

Step 1: Confirm Your Work Falls Under the Permit

The DPS nonconsensual towing permit covers towing a vehicle from private property without the owner's consent. The most common examples are parking lot and apartment trespass tows. The rule is DPS Rule 570-38-7, and the enabling statute is O.C.G.A. 44-1-13. The permit is issued by DPS Commercial Vehicle Enforcement, the division renamed from Motor Carrier Compliance by HB 116, effective July 1, 2025.

Several common tow types are not nonconsensual towing under the rule:

  • Crash scene tows
  • Police rotation tows
  • Consensual tows, such as a driver who calls you for a roadside or accident hook up

A consensual tow has no state permit under these rules. Police rotation list requirements are set by the city or county, so check with DPS and your local police department before you plan around rotation work. Confirm these requirements before you buy equipment.

Step 2: Understand the Permit Terms

The annual filing fee is $300, and it is nonrefundable. Plan your budget and your calendar around these rules:

  • The permit lasts one year.
  • There is no grace period after expiration.
  • An expired permit cannot be renewed. You must apply again as a new applicant.
  • Renewal applications are accepted no sooner than 60 days before expiration. A complete application filed before expiration keeps the permit in effect while it is pending.
  • The firm must be a registered Georgia entity, and the business name must match every document.
  • The permit is not transferable. A name change or ownership change requires a replacement permit.

Mark the 60 day renewal window on your calendar the day you receive the permit.

Step 3: Buy the Required Insurance

DPS requires the following coverage:

  • Bodily injury: $100,000 per person and $300,000 per accident
  • Property damage: $50,000
  • Garage keepers legal liability: at least $50,000, covering vehicles in your impound lot

You must file insurance certificates with DPS every year. Your insurer must give DPS a 30 day cancellation notice. The permit is valid only while insurance is on file, so a lapse in coverage can affect your permit status. Ask your agent specifically about garage keepers coverage. A standard commercial auto policy often does not cover a vehicle sitting in your custody, so do not assume it does.

Step 4: Set Up Equipment and Daily Operations

DPS sets specific operating requirements that you must build into your lot and fleet from day one:

  • Vehicle markings and papers: Each vehicle carries a copy of the permit and is marked with the carrier name and DOT number. Your firm needs either a Georgia Intrastate Motor Carrier registration or a Unified Carrier Registration, depending on which applies to your operation. Confirm which one with DPS.
  • Impound lot: The lot must be fenced at six feet, lit, locked and secure. It must be in the county where your listed office is located.
  • Hours and staffing: You need normal business hours with an attendant five days a week, plus four hours on a sixth day. A phone attendant must be available 24 hours a day.
  • Public phone number: List a phone number that the public can use to reach you.
  • Owner contracts: Sign a written contract with each property owner you serve.
  • Receipts: Obtain a receipt signed by the person paying.
  • Records: Keep a driver list and motor vehicle reports available for DPS.

Build your lot and staffing plan around these hours before you sign a lease. A lot that meets the fencing and lighting rules but lacks overnight phone coverage will not satisfy the rules.

Step 5: Follow the Rate Tariff and the 24 Hour Rule

DPS sets a maximum rate tariff for nonconsensual tows. Check the DPS website for the current amounts, and keep a printed copy with your business records. Do not charge more than the tariff allows.

The 24 hour rule protects vehicle owners in two ways:

  • You may not charge a storage fee for the first 24 hours after removal.
  • If the owner returns before the vehicle is hooked, the driver must not tow the vehicle or charge for the tow. After hooking, the only charge allowed is the tariff operator fee.

Train every driver on these two points.

Step 6: Post Signs and Document Property Owner Authority

A property owner may tow only when a conspicuous sign is posted. The sign must state where the vehicle can be recovered, the cost, and the forms of payment accepted. Residential property with four or fewer units is exempt from the posting rule. DPS sign rules set the size and content requirements, so check the current rules before you order signs.

Keep the signed contract with each property owner in the same file as the posted-sign photos for each property. If a dispute arises, these records show that you followed the rules.

Step 7: Know the Penalties and the City Layer

DPS may fine violators up to $2,500. Surveillance-based towing agreements carry a $1,000 fine. A vehicle owner who is injured by a violation may recover at least $100 in damages, and for an intentional violation the owner may recover three times actual damages.

Cities add their own layer of rules. A city may require its own towing license or fee, set lower maximum rates than DPS, or require higher insurance. Check the city before you operate there, not after your first complaint. If you work in several jurisdictions, build a compliance table that lists each city's rules next to the DPS rules.

Step 8: Complete the Standard Business Steps

These are the general steps that apply to any Georgia business with employees or a local presence:

  1. Form the entity. File Articles of Organization for an LLC or Articles of Incorporation for a corporation. The total cost is $110, which is the $100 fee plus a $10 service charge. You can file online through the Secretary of State eCorp portal or on paper. Online filings take about 7 to 10 business days, and paper filings take about 15 business days. Expedited review costs $120 for 2 business days, $275 for same day if received by noon, or $1,200 for one hour on business days. You can reserve a name for 30 days for $35.
  2. Appoint a registered agent. Every entity needs a registered agent at a Georgia street address. A P.O. box or mail drop does not qualify. An LLC's agent must be a Georgia resident individual or a corporation authorized to do business in Georgia. An entity cannot serve as its own registered agent.
  3. Calendar the annual registration. Annual registration costs $60, which is the $50 fee plus a $10 service charge. It is due between January 1 and April 1 each year. An LLC files its first annual registration in the year after it forms. A corporation files within 90 days of incorporating. Confirm the current window and the late penalty with the Secretary of State.
  4. Register a trade name if needed. If you operate under a name other than your entity's legal name, file the trade name with the Clerk of Superior Court in the county where the business is chiefly carried on. Trade names are not filed with the Secretary of State. The notice must be published in the county legal organ once a week for two weeks. The clerk fee was about $165 to $166 in the counties checked, plus the newspaper charge, so confirm the exact amount with your county clerk.
  5. Obtain the local occupation tax certificate. Apply with your city, or with your county if you are in unincorporated territory. Private employers with more than 10 employees must file an E-Verify affidavit to receive the certificate under O.C.G.A. 36-60-6.
  6. Register with the Department of Revenue. If you have employees or sell taxable goods, register through the Georgia Tax Center. Registration is free. The state sales tax rate is 4%, and combined state and local rates run from 6% to 9% depending on county and city.
  7. Carry workers' compensation at three or more workers. The requirement applies to three or more workers, including part-time workers. Georgia has no state paid sick leave or family leave mandate.

For tax rates, including the state income tax rate for your entity type, see the Georgia Department of Revenue at https://dor.georgia.gov/.

Common Mistakes to Avoid

  • Assuming every tow needs the nonconsensual permit. Crash scene, police rotation and consensual tows follow different rules.
  • Using different business names. A mismatch between the entity filing, the DPS application and your signs can delay or block your permit.
  • Letting the permit lapse. An expired permit cannot be renewed and must be reapplied for.
  • Charging storage in the first 24 hours. The rule is clear, and drivers should be trained on it.
  • Hooking after the owner returns. If the owner returns before hooking, you must not tow or charge.
  • Using a P.O. box as your registered office. The registered office must be a Georgia street address.
  • Assuming county paperwork covers city work. A business inside a city pays the city, and cities may add their own towing rules.
  • Allowing insurance to lapse. The permit is valid only while insurance is on file.
  • Skipping the lot requirements. A lot that lacks the fencing, lighting, locks or staffing hours can jeopardize your permit.

What to Expect as a Result

Completing these steps may put you in a position to apply for and maintain a DPS nonconsensual towing permit. The steps are designed to meet the published requirements, but they do not guarantee that DPS will approve your application. Your timeline depends on Secretary of State processing, which runs about 7 to 10 business days online, plus DPS review time, which can vary. Confirm current processing timelines with each agency before you plan a launch date.

Official Resources

For DPS permit forms, rate tariff and sign specifications, check the Department of Public Safety directly. Verify all fees and deadlines with the named agency before you file.

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